Amazon Web Services served Rs 549 crore income tax demand notice: Report

AWS: The income tax department has reportedly raised the demand for Rs 190.85 crore tax for 2014-15 and Rs 358.27 crore for 2016-17 by invoking Section 147 of the Income-tax Act

The Income tax department (I-T dept) has sent a tax demand notice of Rs 549 crore to Amazon Web Services (AWS), a report by The Economic Times (ET) said. This is based on the findings that the tech major was imposing a fee for offering its cloud services to Indian companies. This fee is taxable in India, but AWS reportedly evaded the tax. 

The income tax department said that the receipts from cloud computing services were in the nature of royalty and fees for technical services (FTS).

The tax department has reportedly raised the demand for Rs 190.85 crore tax for 2014-15